• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Waxman-Markey – Last Minute Changes Don’t Lower The Price Tag

    The Waxman-Markey global warming bill – already the most convoluted attempt at economic central planning this nation has ever seriously considered – just got a lot more complicated with hundreds of pages of last-minute changes. Though it would take weeks for members of Congress to figure out exactly what this now-1,200 page bill does, it is scheduled for a rush vote by the end of the week. But one thing is certain – it still is a massive energy tax that would severely hurt the American people and the American economy.

    The current version does not weaken the stringent targets and timetables for reducing emissions of carbon dioxide from fossil fuels. They must decline by 3 percent in 2012, 17 percent by 2020, and 83 percent by 2050. Since fossil fuels comprise 85 percent of the nation’s energy and there is no way to cheaply substitute for them, the targets amount to energy rationing. Prices for gasoline, electricity, and natural gas have to rise high enough so that individuals and businesses are forced to use less of them. Economic pain is how these ever-tightening targets are met.

    The Heritage Foundation estimates electricity costs rising by 90 percent by 2035, gasoline by 58 percent, and natural gas by 55 percent. A household of four can expect to pay $1,241 more for energy annually by that year. And since higher energy costs raise the price of everything else, the total impact of this energy tax would reach nearly $3,000 per household per year from 2012-2035. Total gross domestic product losses average $383 billion annually from 2012-2035 and would total $9.4 trillion dollars.

    High energy costs also kill jobs, especially energy-intensive manufacturing jobs. An estimated 1,145,000 will be lost under this bill. Farming is also energy intensive, and thus would be badly harmed. Heritage estimates lower farm profits by 28 percent in 2012 alone, and 57 percent from 2012-2035.

    In response to complaints from farmers and their representatives, proponents of the bill provided some free rights to emit carbon dioxide to rural electric cooperatives. In all likelihood, rural electricity and other energy prices would still go up, and the disproportionate burden on farmers and other rural residents would barely be dented.

    There is no tinkering around the high costs of Waxman-Markey, and even assuming a few hundred more pages are added tomorrow or the day after, this remains a massive energy tax.

    Posted in Energy [slideshow_deploy]

    22 Responses to Waxman-Markey – Last Minute Changes Don’t Lower The Price Tag

    1. Eugene Nottingham says:


    2. JD, Hays KS says:


    3. Pingback: Cheat Seeking Missiles » The Rush Towards Energy Dependence

    4. Pingback: » Financial News Update - 06/24/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    5. B. Sinclair says:

      Garbage! Just another scheme by slick politicians (not Statesmen)to gain wealth…for themselves and their cronies. Guarantee yourselves Al Gore is nearby. SICK of the mess!

    6. J, Copeland, Columbu says:

      Massive wealth transfer from the Mid-West and South to the Northeast and West Coast. If it wasn't a scam then they would have copied the Sulfur Dioxide program used in the past. This bill allows Nuclear and Hydro projects to get allowances for CO2 which is basically writing them a check. Not to mention organizations can have allowances bestowed upon them which is like writing them a check. So many things are bad and there is not enough room to write them all down.

    7. Stacia Lemon, MI says:

      Contact them NOW!!!!!!! Why is everything they do behind closed doors?

    8. Grace, Florida says:


    9. gp,nj says:

      It's behind closed doors so that they can get away with the biggest money grab from the American people in the history of this republic in which they will use to line their own pockets. This is plain nuts and we just shouldn’t stand for it. It’s time we all become pro-active and contact each and every representative and tell them that they better not vote yes on this and at the very least there should be ample amount of time for debate. We are all fools and we are allowing these idiots to weave the rope that we will all hang from.

    10. Marshall Hill MI. says:

      Welcome to the "Scheming Party of Promises!"

    11. joan, connecticut says:

      Where is the promised transparency in Government? The Waxman/Markey bill is another tax burden heaped on the American citizen,while "friends" of Congress reap the benefits. The middle class takes it on the chin again and again. Vote no on Waxman/Markey!

    12. Dave, Bellingham, Wa says:

      Not only is it a giant regressive tax that reduces wealth and employment in perpetuity, but it also increases CO2 production by chasing economic activity to less efficient economies. It also establishes a large, inefficient bureaucracy with the permanent ability to distort the economy and punish disfavored companies or segments of the economy.

      Finally, it guarantees a permanent gusher of campaign contributions to members of Congress from companies seeking a piece of the pie in the form of a tax credit or or handout from the taxpayers. A cynic would say that this is the primary reason for passage of the bill.

    13. Lynn B. DeSpain says:

      Why is it so hard for Americans to find out for themselves that A: There is no Global Warming at this time, just research the facts. B: If there was a Global warming it would not be caused by CO2 but rather by water suspended in the atmosphere, not CO2. C: Oil is not a 'Fossil Fuel" It is a naturally occuring substance made up from two of the Earth's Crust's most two common Compounds, Calcium Carbonate and Iron Oxide, extereme temperatures and extreme pressures and the Eath's rotation continually supply us with Crude Oil and Methan Gas!

      People, stop being sheep! If there were warming, then why is it that 1797 and 2005 are the only two warmest years on record in the past 25? Why are the Glaciers growing at a fantastic rate in Alaska? Why have we had the coldest Summers on record for the past three Summers? Why have we had the coldest Winters for the past four Winters?

      Stop being mislead! It costs Americans 20 million for each electric producing windmill set up, and will last for twenty years. In that time the windmill will produce 4 million in electricity! Who's screwing who?


    14. Cathy Amelio, New Je says:

      Write or call your legislators now! It took only one person to pull prayer in schools maybe if these ivory tower dwellers were voted out it would mean a great deal, but it seems they just get voted back again and again. We have to stand-up now and say we are fed up and will not take it anymore. We the people are not being represented and thought of as just units of tax.

      Take a stand now!

    15. james woulfe........ says:

      I am against new energy bill. Stop waxman bill.

    16. Pingback: BlueRidgeForum » Tea Party Topics: Cap-and-Trade Is Biggest Tax Hike Ever

    17. Kevin, Addison,TX says:

      Vote no on this ridiculous bill. If anyone in the senate votes for this , they will also be punishing their own family members.

    18. John, Carmel, IN says:

      Vote No, it will hurt the coal industry, manufacturing states, the elderly, the poor, and create a loss in jobs. This country can't afford any more job losts.

    19. Frank Crocker, Washi says:

      Garbage. The US cant afford this! We are already in the red.

      Frank Crocker

      Axioma Tennessee

    20. John Rosky Andover, says:

      What gives these politicans the right to do any of this. Can't they understand the Constitution, in that the power that they get is from the people and not special interests. Next election let's get normal people in Congress because we have to wait 4 years to get the Socialist Obama out of office.

    21. judy/ morehead NC says:

      I want to know how each representative voted. Where do I find that info?

    22. Jay, Humble, TEXAS says:

      Remember who voted yes on this bill in 2010. It's time for change alright … vote the bums out of office!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.